Green technology and energy consumption efficiency in Zimbabwe

Abstract

Environmental pollution is one of the major problems that has become an increasing area of concern globally, leading to the emergence of green energy technology. Research has been conducted on green technology adoption mainly in developed countries. However, there is noticeably limited knowledge about technology adoption and energy consumption in developing countries, for example, Zimbabwe. Thus, this paper seeks to analyze the impact of green technology adoption on energy sector performance in Zimbabwe. The results established that green technology adoption, energy pricing, energy sector investment, and capital structure significantly influence energy consumption efficiency. These results showed a positive relationship between green technology adoption and energy consumption efficiency based on the argument of the substitution possibility effect between green technology and energy demand. The study recommends adopting and identifying the type of green technology to utilize and the timing of investment in green technology. In addition, alternative estimation methods can be adopted to test the robustness of the findings.